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FAME-3
Context:
In encouraging news for electric vehicle (EV) manufacturers, the government has announced that the third phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, known as FAME-3, will be launched within two months.
More on news
- This move is part of the government’s broader initiative to accelerate EV adoption across the country.
- The FAME-3 scheme, once implemented, will replace the Electric Mobility Promotion Scheme (EMPS) 2024, which is set to expire at the end of September.
- EMPS 2024 came into prominence following the expiration of the FAME 2 scheme in March this year.
- Launched in 2019, FAME 2 was initially planned for a three-year period until 2022, but it was extended until March 2024.
About
FAME is a scheme launched by the Government of India to promote the adoption of electric vehicles in the country. The scheme provides incentives and subsidies to encourage the purchase of electric vehicles and support the development of the EV ecosystem in India.
There are three phases of the FAME scheme:
- FAME-I (2015-2019): This phase had an initial outlay of Rs 895 crore.
- FAME-II (2019-2024): Launched in 2019 with an initial outlay of Rs 10,000 crore for three years. It was later extended up to March 2024 with an additional outlay of Rs 1,500 crore.
- FAME-III: The government is currently working on the third phase of the FAME scheme, which is expected to be launched in the next 1-2 months. The FAME-III scheme will replace the Electric Mobility Promotion Scheme (EMPS) 2024.
- The Electric Mobility Promotion Scheme (EMPS) 2024 is a temporary scheme that was introduced in March 2024 with a budgetary allocation of Rs 500 crore. It is set to expire by the end of September 2024. The EMPS provides subsidies for the purchase of electric two- and three-wheelers.
Other schemes to promote Electric Vehicles (EVs):
- The Production Linked Incentive Scheme for the Automobile and Auto Component Industry (PLI-AAT) with a budget of ₹25,938 Crore.
- This scheme offers incentives for a range of electric vehicles, including e-2Ws, e-3Ws, e-4Ws, e-buses, and e-trucks.
- Scheme to Promote Manufacturing of Electric Passenger Cars in India to attract investments from global EV manufacturers and position India as a key hub for e-vehicle manufacturing.
